NYPA trustees approve 2 percent increase for 2015 operating budget

by jmaloni

Submitted

Fri, Dec 19th 2014 08:00 pm

The New York Power
Authority trustees have approved a 2 percent increase for the statewide public power
utility's operating budget in 2015 that will help continue to transform New
York's electric power system to one that is more intelligent and flexible in
responding to the needs of customers.

The budget, which was
adopted Tuesday, is closely aligned with major energy initiatives of Gov.
Andrew M. Cuomo, including the New York Energy Highway, BuildSmart NY, ReCharge
New York, Charge NY, NY-Sun and the Reforming Energy Vision. Each is designed
to modernize the state's electric power system, improve energy efficiency and
advance the use of clean energy sources and new technologies.

"The budget will ensure
the continued effective operation of our generation and transmission
facilities, advance major life extension and modernization initiatives, and
support the governor's push for improved energy efficiency and integration of
the latest energy technologies," said NYPA Chairman John R. Koelmel.

The budget includes
$446.6 million for operations and maintenance; $263.4 million for capital
expenditures, including upgraded infrastructure; and $239.3 million for energy
services programs. While investing heavily in electricity infrastructure,
energy efficiency and strategies for meeting future customer needs, the budget
allows NYPA to meet its fundamental mission of providing low-cost electricity
for job-creating businesses, for public facilities and other customers.

"The budget lays a
foundation for reinventing and reimagining the Power Authority's future, from
its upgrading of energy infrastructure to its investments in smart-grid
innovations and other advanced technologies," said NYPA President and CEO Gil C. Quiniones. "These efforts reflect the importance
that we give to the operational excellence of our facilities and new strategic
initiatives that will offer customers more choices related to their energy
usage."

Those choices involve
expanded power generation at the customer level that is consistent with the governor's
Reforming Energy Vision initiative. Such programs promise to alter the
traditional model of the electric power industry and contribute to "customer
empowerment" and a resilient, more robust electric power system.

The three major credit
rating agencies - Moody's Investors Service, Standard and Poor's and Fitch
Ratings - recently weighed in with a string of positive reports that will help
ensure NYPA's continued low-borrowing costs and complement its ability to carry
out the initiatives included in the budget.

•The
Marcy-South Series Compensation Project, an initiative to help relieve
transmission congestion on two NYPA power lines from Central New York to the
Catskill, $12.7 million; and

•Circuit
breaker and relay replacement at the St. Lawrence-FDR Power Project, $9.7
million.

The
energy-efficiency services budget, which was increased by
$17 million to $239.3 million, advances NYPA's oversight of Cuomo's BuildSmart
NY Program, a statewide initiative to improve the energy efficiency of state
government facilities by 20 percent by 2020. The Power Authority is making
similar improvements at local government facilities - including schools,
hospitals and municipal buildings statewide. It funds continuing partnerships
with job-creating energy service companies for wide-ranging upgrades at
customer sites, including high-efficiency lighting, more efficient boilers and
chillers and clean energy technologies such as fuel cells, solar power and
electric vehicles.

Since 2013 - the first
full year of BuildSmart NY - the program has resulted in tens of millions of
dollars in lower electric bills and substantial greenhouse gas reductions.